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I think one of the issues is that he has simultaneously told the opposite story to his lenders, making himself look wealthier than he is in order to score loans

by pontus 6y ago

I think one of the issues is that he has simultaneously told the opposite story to his lenders, making himself look wealthier than he is in order to score loans. This, is fraud.

jmcguckin 6y ago
When I bought my house (borrowing roughly 200K) the bank wanted several years of tax returns and basically put my finances under a microscope. Pretty much everything except the anal probe. So, you think a bank that's going to lend Trump 100 Million isn't going to examine his finances in greater detail?
- notacoward 6y ago
  Bold of you to assume the same rules apply to you and him. It's not even the same group of people evaluating your loan vs. his. Then they're going to evaluate his differently. Nobody's going to get promoted for landing your deal, but someone very well might for landing his. Yes, they'll look into his finances some, but they couldn't possibly probe every nook and cranny of such a large and complex empire where the dirty bits might be hidden. With greed nipping at their heels, they'll quickly convince themselves it's good enough. In short, not the same process or standards at all.
- rrss 6y ago
  Yes. > In 2003, Deutsche Bank helped Mr. Trump’s casino company sell hundreds of millions of dollars in bonds. > Mr. Trump’s company defaulted in 2004, leaving Deutsche Bank’s clients with deep losses. The bank’s investment division that sold the bonds vowed to not do business again with Mr. Trump > A year later, though, Mr. Trump approached another part of the investment division for a $640 million loan to build a skyscraper in Chicago. It made the loan — and in 2008, Mr. Trump defaulted and sued Deutsche Bank. That prompted the whole investment division to sever ties with Mr. Trump. > And then, three years after his previous default, Deutsche Bank started lending to him again, this time through the private-banking division that catered to the superrich. In fact, it lent Mr. Trump money that he used to repay what he still owed Deutsche Bank’s investment division for the Chicago loan. > In 2016, the board of directors commissioned a report into how the bank had become so enmeshed with Mr. Trump > The report, prepared by the board’s integrity committee, concluded that Deutsche’s private-banking division, which catered to very rich individuals, was so determined to win business from big-name clients that its executives had looked past Mr. Trump’s history of stiffing his lenders So, try this: default on your ~200k mortgage. take out another, larger mortgage with the same bank. default on that one too, and then sue the bank for damages. then get a loan from the same bank to pay back your remaining debt from the second mortgage. I'm skeptical that you could pull this off, and yet Donald Trump somehow managed to get comparable loans from Deutsche Bank. https://www.nytimes.com/2019/03/18/business/deutsche-bank-donald-trump.html https://www.nytimes.com/2019/03/18/business/deutsche-bank-do...
  - ikt 6y ago
    my mind is blown by this
- kumarvvr 6y ago
  For celebrities, and especially those with lots of properties in their name, it makes sense for a bank to give a huge loan and be assured that at the worst, properties will be attached. Loans for a house are completely different from, say, loans for a commercial high rise, smack in the middle of New York.
- digitaltrees 6y ago
  The banks that originated his loans stood to make a percent profit when they resold them as securities on a secondary market. The bank probably did Less diligence on him than on your mortgage because they’re not regulated on such loans.
- pwinnski 6y ago
  Commercial real estate is a completely different category from personal real estate. Trump specifically has a long record of lying to commercial lenders and then daring them to foreclose. This was covered in his ghost-written book. It did not make Chase Bank look wise.
- SamBam 6y ago
  It is quite possible that the loans were underwritten by other parties. The fact that Trump is at least 300-400 million dollars in debt to unknown parties is a huge national security risk.

by pontus 6y ago

I think one of the issues is that he has simultaneously told the opposite story to his lenders, making himself look wealthier than he is in order to score loans. This, is fraud.

jmcguckin 6y ago

When I bought my house (borrowing roughly 200K) the bank wanted several years of tax returns and basically put my finances under a microscope. Pretty much everything except the anal probe. So, you think a bank that's going to lend Trump 100 Million isn't going to examine his finances in greater detail?

notacoward 6y ago
Bold of you to assume the same rules apply to you and him. It's not even the same group of people evaluating your loan vs. his. Then they're going to evaluate his differently. Nobody's going to get promoted for landing your deal, but someone very well might for landing his. Yes, they'll look into his finances some, but they couldn't possibly probe every nook and cranny of such a large and complex empire where the dirty bits might be hidden. With greed nipping at their heels, they'll quickly convince themselves it's good enough. In short, not the same process or standards at all.
rrss 6y ago
Yes. > In 2003, Deutsche Bank helped Mr. Trump’s casino company sell hundreds of millions of dollars in bonds. > Mr. Trump’s company defaulted in 2004, leaving Deutsche Bank’s clients with deep losses. The bank’s investment division that sold the bonds vowed to not do business again with Mr. Trump > A year later, though, Mr. Trump approached another part of the investment division for a $640 million loan to build a skyscraper in Chicago. It made the loan — and in 2008, Mr. Trump defaulted and sued Deutsche Bank. That prompted the whole investment division to sever ties with Mr. Trump. > And then, three years after his previous default, Deutsche Bank started lending to him again, this time through the private-banking division that catered to the superrich. In fact, it lent Mr. Trump money that he used to repay what he still owed Deutsche Bank’s investment division for the Chicago loan. > In 2016, the board of directors commissioned a report into how the bank had become so enmeshed with Mr. Trump > The report, prepared by the board’s integrity committee, concluded that Deutsche’s private-banking division, which catered to very rich individuals, was so determined to win business from big-name clients that its executives had looked past Mr. Trump’s history of stiffing his lenders So, try this: default on your ~200k mortgage. take out another, larger mortgage with the same bank. default on that one too, and then sue the bank for damages. then get a loan from the same bank to pay back your remaining debt from the second mortgage. I'm skeptical that you could pull this off, and yet Donald Trump somehow managed to get comparable loans from Deutsche Bank. https://www.nytimes.com/2019/03/18/business/deutsche-bank-donald-trump.html https://www.nytimes.com/2019/03/18/business/deutsche-bank-do...
- ikt 6y ago
  my mind is blown by this
kumarvvr 6y ago
For celebrities, and especially those with lots of properties in their name, it makes sense for a bank to give a huge loan and be assured that at the worst, properties will be attached. Loans for a house are completely different from, say, loans for a commercial high rise, smack in the middle of New York.
digitaltrees 6y ago
The banks that originated his loans stood to make a percent profit when they resold them as securities on a secondary market. The bank probably did Less diligence on him than on your mortgage because they’re not regulated on such loans.
pwinnski 6y ago
Commercial real estate is a completely different category from personal real estate. Trump specifically has a long record of lying to commercial lenders and then daring them to foreclose. This was covered in his ghost-written book. It did not make Chase Bank look wise.
SamBam 6y ago
It is quite possible that the loans were underwritten by other parties. The fact that Trump is at least 300-400 million dollars in debt to unknown parties is a huge national security risk.